Microsoft has made two pricing changes in the past year that are raising what many organizations pay for Microsoft 365, Azure, and other cloud services.
On November 1, 2025, Microsoft removed Enterprise Agreement volume discounts, known as price levels B through D, on online services, so every customer now starts at the same list price. Industry estimates put the impact at roughly 6% to 12%, depending on your former level. It takes effect at renewal, with a new agreement, or when you add an online service you were not already buying.
On July 1, 2026, Microsoft also raised Microsoft 365 list prices. E3 rose from $36 to $39 per user per month, and E5 from $57 to $60. For organizations that lost their volume discount, the two increases stack.
With volume discounts gone, an Enterprise Agreement is no longer automatically the best value. Shifting some users to monthly or annual subscriptions, right sizing license tiers, and removing unused seats can offset much of the increase.
As an independent, vendor neutral advisory firm, CommteX Technology Advisors, LLC is not tied to any single reseller or licensing program. We offer a cost free review of your Microsoft licensing, so you can see what you are paying, what you actually use, and where the savings are, before your next renewal.
Contact CommteX Technology Advisors, LLC for your free Microsoft licensing review.